Kizashi Trade-ins

[KuroNekko]

I find trade-ins to be total rip-offs. The dealer will always low-ball you and prey on your ignorance and/or desire for convenience. They do this so they can later sell off your car at a decent profit.
While the Kizashi is at particular risk for a low trade-in, just about any used car, especially high mileage, is.
I recall that when I got my Kizashi, I was offered a trade-in on my '05 Mazda3 Sport with 106K miles. The dealer knew I drove all the way from DC to Jersey City, NJ so they thought they had me on the trade-in. They offered me $2200 on the Mazda. I refused and claimed that the offer was less than 1/3 of the Kelly Blue Book value for private sale. They then haggled with me and had numerous managers come talk to me about trading in my Mazda. Final offer was $3750. I still said no and that the very minimum was $5000 given I knew I could sell it for at least $6000 privately. I also explained that I just had the clutch replaced at the dealer for $1400 and there was no way I was letting it go for under 5 grand. After declining their final offer, I recall overhearing the manager say under his breath to the salesman, "This guy knows what he's doing".

I still got the Kizashi, obviously, but drove back my Mazda and picked up my Kizashi 2 weeks later when I had a ride. When I purchased the Kizashi, I had them agree to holding the car for 2 weeks as part of the purchasing agreement. It was very inconvenient, but I didn't need the trade-in value to afford the Kizashi.
A few months later (a few weeks after going up for sale), I sold the Mazda privately to a woman on craigslist for $6600 in cash. Triple the dealer's initial offer and considerably more than their final offer.
I know that not everyone has the cash, flexibility, or the patience to sell a car privately over a trade-in, but I think my story goes to show that trade-ins are a losing game for the owner. You can get way more money selling it yourself privately. For a car like the Kizashi, it's near financial suicide to trade it in. Given that dealers are buying the cars for dirt cheap but not exactly selling them for so, I think it's clear they are looking to make good profit on used Kizashis.

[kentman4]

I agree. I could sell my Kizashi myself for at least 8,800 in my area, which makes me feel good because I could possibly make a profit. I just wanted to see what id get, besides the Kizashi they had was overpriced in my opinion. $13,878 with 49K was the price which isn't too bad but I looked up the value according to kbb and it could only be sold around $11,000 privately. I looked it up because I plan ahead and thought if I lost my job, what could I sell it for? The total was around 15,900 after my trade in and fees were calculated in. I would've been wayyyyyyy upside down. I agree most dealers get Kizashi's for cheap then sell them trying to make a profit. I looked at an 2011 sport before I purchased the one I have now. They were asking 13,900 I believe. The car had 97K miles on it. I asked what's the lowest he'd take and he said $10,900. I left in a hurry...

[WESHOOT2]

At our dealership we show our customers their trade ACV ("Actual Cash Value").
It's literally what our buyers are paying, except we charge them $85 for title work.


One of the reasons I work here.....Eagle Scout am I.





ps no one at Kelly Blue Book will write a check for your old car; it's just an ad site. edmunds.com is usually within a thousand in either direction

no one there will write you a check, either

[WESHOOT2]

Further:

Our appraisal system, when fed your VIN and mileage, pulls up its CarFax, any on-line service reports, and the national weekly auction reports for your vehicle.
THEN we call our buyers.




Always ask yourself: "What will the end-buyer actually pay for the car?"


So lets' use my old K as a perfect example. It was ACV'd at $3,000. That means whichever buyer who gets it will ask $4995, and take $500 off to close the deal.
Anyone here work for free?
Profit is not a dirty word, ay?

[KuroNekko]

ps no one at Kelly Blue Book will write a check for your old car; it's just an ad site. edmunds.com is usually within a thousand in either direction

no one there will write you a check, either

I agree that KBB values can be off, but I'd argue it's more against the owner. After all, how can it reflect the things a buyer will value like a new clutch, new suspension components, an HID kit, an upgraded stereo with full iPod integration, aftermarket LED tail lights, and a number of other desirable factors that simply couldn't be conveyed via checking preset boxes on a website?
However, one can always list out the investments into the car in an ad and serious private buyers will take notice. Sure worked for me to get thousands more than trade-in offers.

Profit is not a dirty word, ay?

Nope, but I sure don't want others making it off of my investments. I'll pocket those "profits" from doing the work myself.

[WESHOOT2]

Ditto: think 'CraigsList'

[Ronzuki]

Anyone here work for free?
Profit is not a dirty word, ay?

Seems like it is most of the time these days ...many of our customer's seem to think we're an NPO here. I've mentioned to our owners they'd missed the "a not for profit organization" on our business cards. I mean seriously, a plumber rings your door bell and it's $75. Lawyerly advice from a legal practice is $250-$350+ per hour. What makes anyone think I'll give away free engineering advice (not practicing btw) to solve automation problems that they can't? I've used that same analogy on 'well' educated' "professionals" and they look at me as though I'm a 3-headed monster. Wanna play...gotta pay.

WESHOOT...what's your opinion regarding Tru-Car's price reporting? Granted it's another "member" funded type situation, but how does their data compare to that of the auction and wholesale reports you have access to?

[WESHOOT2]

We don't use it at all; Galves Weekly, if on paper......

[KuroNekko]

Lawyerly advice from a legal practice is $250-$350+ per hour. What makes anyone think I'll give away free engineering advice (not practicing btw) to solve automation problems that they can't?

I think you're defining "practice" incorrectly as it applies to the legal or medical field. It's the "practice" defined as: "to use one's knowledge of; work at, esp. as a profession: to practice law." A legal practice means to work in the field of law, often in which the one employed manages him or herself. It doesn't mean one is an inexperienced lawyer fresh out of law school and still in need to develop their skills. Fields like law and medicine just use the term "practice" to define work in the field. When a lawyer or doctor says they have a legal or medical practice, you can assume they a self-employed professional who most likely works for themselves and aren't employed in a law firm or hospital. It doesn't mean they are novice and still working to build up skills. In fact, quite the opposite if they are in their own practice.

[Ronzuki]

That's all fine and dandy. Your definition is a 'what it should be'...then there's the 'what it really is'. Make no mistake....trust me on this...they are practicing in the every literal sense of the word. Multiple firms were practicing as well as the good ole' judge who had 'practiced ' law in his day as well. I practiced paying a lot and on a regular basis over 4 years to settle an estate over the determination of what a simple sentence, in a standard bank account contract, written in clear plain English, meant. The process yielded much lawerly produced toilet paper from all of them containing many errors that caused confusion, delays and more expense. I don't get away making mistakes like that and then expecting my customers to pay me to have another go at it. Therefore I do not work in, or for, an Automation and Industrial Controls practice. After reviewing the lawyers 'work' (which they get paid handsomely for) and constantly finding mistakes a lawyer shouldn't be making, one could only arrive at the simple conclusion: they're all literally practicing law.